More than 130 jobs are to be created in Dundee after a hydrogen technology company received a £1.5 million funding boost.
Arcola Energy Ltd received the grant from Scottish Enterprise to create a new engineering and manufacturing facility in the city.
The company, which specialises in fuel cell technology integration, will be one of the first tenants at the Michelin Scotland Innovation Parc (MSIP) – a joint venture between Dundee City Council, Michelin and Scottish Enterprise.
MSIP will help transform the former tyre factory site to into a world-leading sustainable transport hub.
The cash, a Regional Selective Assistance grant, will allow the company to create up to 135 roles over a three-year period.
The first phase will bring in around 20 employees to support the Scottish hydrogen train project and product development for hydrogen-powered vehicles.
The remainder of the staff will be recruited over the next three years as Arcola expands production at the site.
Dundee chosen due to green energy aims
Arcola also has a rail engineering facility at the Bo’ness and Kinneil Railway and plans for a service centre in Glasgow. It has previously worked with St Andrews University on a hydrogen-powered train project.
Arcola CEO Dr Ben Todd said: “We were attracted by MSIP’s ambition to become a leading hub supporting the decarbonisation of Scotland’s transport system and infrastructure, and in particular by the hydrogen production and fuelling facility that MSIP is building to support development and deployment of zero-emission vehicles. We are very pleased to be an early part of it.
“This new facility will be Arcola’s main manufacturing base, supporting our growing business needs as we expand our range of heavy-duty fuel cell vehicles.”
The company’s new Dundee facility will support their work in adapting heavy-duty vehicles and transport applications to zero-emission, hydrogen-powered solutions, supporting Scotland’s ambitions for a net zero carbon emissions economy.
Andy McDonald, Head of Low Carbon Transition at Scottish Enterprise, said: “This announcement is obviously great news for the company and the people of Dundee, but also in terms of the growth of our sustainable mobility sector.
“The creation of MSIP has been a huge step in supporting the growth of this sector and Arcola will be a really exciting addition to the facility, as well as a real boost to the efforts towards establishing Scotland as a world leader in sustainable mobility.”
Announcement ‘vital’ for post-Covid economy
Economy Secretary Fiona Hyslop added: “The Michelin Scotland Innovation Parc vision is to be a world class centre of sustainable mobility and low carbon energy. We want Scotland to lead the way in developing and manufacturing the technologies of the future and MSIP will be vital in helping us achieve this.
“This announcement is another positive step forward for MSIP and Dundee as a hub for the green jobs that will be vital to our post-pandemic recovery.”
MSIP CEO Greig Coull added: “When MSIP was established, jobs creation was the priority and that is still the case.
“Our ambition is to have 850 jobs located at the Innovation Parc by 2028. Today’s announcement is a big step towards achieving that.
“I’m pleased Arcola has recognised MSIP as the best place to grow its business. I’m sure the people of Dundee will join me in welcoming this news and I look forward to seeing the impact that Arcola will have at MSIP, but also across the City and Scotland over the coming years.”
